Question

MEDAL & FAN ~ The price of products may increase due to inflation and decrease due to depreciation. Derek is studying the change in the price of two products, A and B, over time.

The price f(x), in dollars, of product A after x years is represented by the function below.

f(x) = 0.69(1.03)x

Part A: Is the price of product A increasing or decreasing and by what percentage per year? Justify your answer. (5 points)

Part B: The table below shows the price f(t), in dollars, of product B after t years:

Answer 1

t (number of years) 1 2 3 4
f(t) (price in dollars) 10,100 10,201 10,303.01 10,406.04


Which product recorded a greater percentage change in price over the previous year? Justify your answer. (5 points)